May 30, 2012

Death cross of CRUDE OIL

  • Four hour chart shows price continue to create new lows below the cloud.
  • Weekly chart shows possible support line in Weekly up trend line. Support for this week comes near 85 levels.
  • Death cross is happening in daily chart. So for some months oversold up moves may not give bigger long trades. right now crude oil looks oversold and a trading bounce is possible from the weekly trend line.
  • Possibility of a bigger fall if weekly trend line does not hold

Bank of America chart analysis

  • BAC Trying to stay above 200 day sma. Daily MACD has given a a buy signal after positive divergence.
  • Price testing middle bollinger band which has to be crossed on closing basis to extend this up move.

SILVER Triangle pattern

  • Silver Four hour chart shows a contracting triangle pattern which should resolve soon.
  • Daily chart shows price unable to close above 20 Day SMA. Bulls need a close above 20 Day SMA for a breakout in their favor.
  • For bears the Weekly support level looks strong between 26.02 - 26.75 level. This level has to be broken for bigger down moves to happen.

NIFTY Intraday update

  • 4950 level acted as resistance before and is trying to support the fall now.
  • Hours closing below this level will be negative.
  • 38.2% and a rising 50 Hour SMA too may act as support levels if the fall extends.

State Bank of India Chart Analysis

  • SBI Daily chart is near resistance levels like upper bollinger band and Golden ratio.
  • SBI Weekly candle is testing 20 Week SMA.
  • Weekly chart is nearing its falling resistance line. Price has got some more to go for hitting this line.
  • Last chart is crucial if a correction is to happen price should fall below 50 Day SMA otherwise a possible hit at the weekly resistance line exist before the correction.